Marriage is one of the most awaited ceremonies in everyone’s life and people often look forward to celebrating it with all pomp and show. Especially in a country like India, marriages are grand celebrations and that’s why the country has big fat weddings. Though marriage is seen as a union of two souls, you should also keep in mind that it often comes with a myriad of responsibilities and expenses. Sometimes managing the financial aspects of the weddings can be challenging, whether you are celebrating it in your house or resorting to destination weddings, isn’t it? That’s one of the reasons many couples turn to marriage loans to ease their burden.
Though these loans definitely offer a financial lifeline, you should also be cautious of a lot of things, otherwise you would end up making huge mistakes. So, here, in the article, we would be understanding the common mistakes you should avoid while taking a marriage loan. Understanding them would certainly help you embark on your marital journey without unnecessary financial stress.
Not Doing Proper Research
When you go to a market to purchase something for your house, you bargain over prices and look for the item at several shops before finalising one, right? So, why not do proper research before going for a marriage loan application? Hence, make sure before you dive into the loan market, you conduct thorough research so that you can understand marriage loan eligibility, requirements of marriage loan documents, repayment terms and more. Many people often make the mistake of opting for the first loan they come across without exploring other options. Do not be that person!
Not Comparing Interest Rates
Though this is also a part of your research, you should spend specific time to explore this aspect. Wondering why? Well, interest rates vary among lenders and banks and even a slight difference in these mariage loan interest rates can substantially impact the total repayment amount. And if you ignore and do not compare interest rates, it can certainly result in unnecessary financial strain. You can utilise online tools and resources to compare interest rates from different lenders before making a decision.
Overlooking Hidden Charges
Before you go for a personal loan for marriage, let us tell you that there are sometimes many hidden charges which lenders do not tell you about. It is your duty to find out these hidden charges neglected which may include processing fees, prepayment penalties, late payment fees, annual charges, etc. And there is no doubt that these additional costs can impact the overall loan burden on you.
Depending Only On Loan
We completely understand that a marriage loan can provide financial support, but it is also essential to explore other options of funding. If you depend solely on a loan without considering personal savings, contributions from family, or alternative financing options, then it can definitely lead to unnecessary debt. Would you want that unnecessary burden on your shoulders? If not, then make sure to evaluate all available resources.
Not Checking Your Repaying Capacity
Before you go with a personal loan for wedding, you should also assess your repayment capacity as it is quite crucial before committing to a marriage loan. If you are overestimating your ability to repay or opting for a loan with a short repayment tenure, then it can bring you financial stress. Hence, always choose a repayment plan that aligns with your income and financial goals.
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Ignoring Credit Score
Your credit score plays quite a prominent role in determining your marriage loan eligibility and interest rates. Hence, it becomes important for you to check and understand your credit score before applying for a marriage loan. A lower credit score may result in higher interest rates or even loan rejection sometimes. If you have a low credit score, then find out ways to improve your credit score so that you can get favourable loan terms.